[Report] "Taking Away Our Base" vs "Long-Term Boon" ... Divergent Reactions in Gwangmyeong-Siheung

"Relieved that development is finally confirmed, albeit late," welcoming atmosphere prevails
Concerns remain over whether adequate compensation will be provided
Massive population influx... Will traffic chaos follow?
"Will lead long-term development of the Seonamgwon region"

Factory area in Gwarim-dong, Siheung City (Photo by Ryu Taemin)

[Asia Economy Reporter Ryu Tae-min] "Developing new towns is good, but I am worried that all the people running factories here will lose their livelihoods." (Representative of A Metal Manufacturing Company in Siheung-si, Gyeonggi-do)

On the 24th, residents in Hakon-dong, Gwangmyeong-si, and Gwarim-dong, Siheung-si, where the reporter visited, were full of complaints. This area is the planned site for the Gwangmyeong-Siheung district, which the government announced in the morning as the sixth 3rd phase new town.

Kim (55), who runs a metal manufacturing company in Gwarim-dong, said, "Factories like ours produce a lot of noise and dust, so it is not easy to find a place to settle," adding, "We have barely established business contacts near Seoul, but if we move, we have to start over from scratch, which is a big burden."

Concerns were also raised about whether sufficient land compensation and support would be provided. Gong Mo (58), who has been in the recycling business in Hakon-dong for over 12 years, said, "There are many heavy machinery and equipment in use, so moving costs alone will be tens of millions of won," adding, "The land prices in this area are very high, so I am worried whether sufficient compensation will be made."

Construction site of Gwangmyeong New Town redevelopment apartment complex (Photo by Ryu Taemin)

Concerns Over Traffic Congestion Due to Large Population Influx... Expectations for Development in the Southwestern Region

There are also voices welcoming the belated confirmation of development. Resident A in Gwarim-dong said, "For over 10 years, there were only rumors about the Bogumjari district and new towns," adding, "It is fortunate that development has finally been confirmed." The Gwangmyeong-Siheung district was designated as a Bogumjari housing district during the Lee Myung-bak administration in 2010 but went through twists and turns such as reduction of the district designation and project cancellation.

Opposition voices were also strong. There are concerns that the large volume of supply will negatively affect the large-scale new town projects underway in the old city areas of Gwangmyeong-si. Resident B in Gwangmyeong-dong said, "If 70,000 households move in at once, the large influx of population will cause a traffic disaster in this area." Currently, redevelopment of old detached housing areas and reconstruction of low-rise apartments in the Cheolsan and Haan housing development districts are being carried out simultaneously in the Gwangmyeong-si area.

However, some optimistic views suggest that new town development will act as a long-term boon for the Gwangmyeong-si area. A representative from A Real Estate Agency in Gwangmyeong-dong said, "The Gwangmyeong-Siheung district mainly consists of public housing and is quite far away, so it will not have a significant impact on the prices of existing private redevelopment and reconstruction properties," adding, "Rather, it will form a large-scale hub city centered on Gwangmyeong in the southwestern region, which can help regional development."